Twin scandals hit PwC’s Asia earnings

At the moment’s agenda: Poland’s historic grievances; Israel bans UNRWA; Spain’s economic system shines; a Nigerian tech ‘unicorn’; and Europe’s automobile disaster

Good morning. We start with the influence of scandals on PwC’s backside line in Asia.

What occurred? PwC’s enterprise within the area shrank over the previous yr after twin scandals prompted the Massive 4 accounting agency to lose purchasers in China and compelled it to promote its authorities consulting arm in Australia.

How dangerous was the hit? The agency reported a 12.7 per cent decline in Asia-Pacific earnings for the yr ended June 30, reflecting its lack of market share within the area and offsetting progress within the Center East and Europe.

Income in Asia-Pacific, the smallest of the agency’s areas, fell from $10bn within the 2023 fiscal yr to $9.3bn, down 5.6 per cent in native currencies.

The 2 scandals compounded an ongoing slowdown within the consulting market that has additionally crimped progress at rivals Deloitte and EY of their most up-to-date fiscal years. Learn the total report.

Right here’s what else I’m preserving tabs on as we speak:

• Excessive-level conferences: European Fee president Ursula von der Leyen has a working lunch with Nato secretary-general Mark Rutte. Ukrainian President Volodymyr Zelenskyy joins Nordic leaders on the Nordic Council assembly in Reykjavík.

• UK: The funeral of Alex Salmond is held. The previous Scottish first minister died of a coronary heart assault whereas in North Macedonia this month.

• Outcomes: Adidas, Alphabet, BP, HSBC, Lufthansa, McDonald’s, Mondelez, Novartis, PayPal, Pfizer, Reddit, Santander, Visa and YouGov are among the many firms reporting. Full checklist within the Week Forward publication.

Hear straight from the presidents of Kenya and Somalia and different leaders on the FT’s Africa Summit beginning as we speak, the place they may talk about the way to drive sustainable progress throughout the continent. Register right here.

5 extra prime tales

1. Ukraine ought to exhume and rebury ethnic Poles massacred on its territory, and Germany ought to spend money on army co-operation and compensate Polish victims of the Nazis, Poland’s international minister has mentioned, including that historic grievances can’t be brushed apart even throughout Russia’s conflict towards Ukraine. Learn the total interview with Radosław Sikorski.

2. Spain is about to surpass the US to grow to be the world’s fastest-growing main superior economic system this yr, increasing at greater than thrice the tempo of the Eurozone as a complete. Economists surveyed in a ballot count on GDP information this week to indicate the nation’s economic system is heading in the right direction to increase by 2.7 per cent this yr. Right here’s what’s driving progress.

3. World funding banks count on UK debt gross sales this yr to rise near £300bn, the second-highest on report, as the federal government heads for a showdown with bond traders at tomorrow’s Finances. Gilts are on observe for his or her worst month since April as unease over a proposed loosening of the nation’s borrowing guidelines provides gasoline to a current sell-off.

• Healthcare enhance: The NHS in England will obtain £1.5bn subsequent yr to ship 2mn additional appointments as a part of a multibillion-pound annual bundle to strengthen the well being service.

• Non-public fairness: Executives, lobbyists and advisers are looking for a take care of UK chancellor Rachel Reeves on carried curiosity.

4. Israel’s parliament permitted two items of laws yesterday that ban the UN company for Palestinian refugees from working inside Israeli territory and lower diplomatic ties with the organisation. The measures, which threaten the company’s capability to offer meals, medication and shelter to just about 2mn Gazans displaced by conflict, have raised issues amongst Israel’s closest allies.

5. Unique: The Nigeria-based fintech Moniepoint has gained “unicorn” standing after elevating $110mn from traders together with Google, a uncommon shiny spot within the funding marketplace for African tech firms. One of many continent’s fastest-growing teams, Moniepoint offers digital monetary companies to a market the place many nonetheless lack entry to financial institution accounts. Learn extra in regards to the start-up’s growth plans.

• Extra from Nigeria: The nation’s president has summoned oil magnate Aliko Dangote to an emergency assembly with trade officers to debate supplying the industrialist’s new $20bn refinery with crude.

Strive your hand in operating the UK economic system with the FT’s Finances recreation.

The Massive Learn

Europe’s automobile trade is confronting an ideal storm. Demand is falling at dwelling and abroad, whereas firms are navigating a dangerous and costly transition from combustion engines to electrical propulsion. Exacerbating these issues is China, which is exporting high-quality, lower-cost electrical automobiles to Europe in higher numbers. Between protectionism and authorities incentives, there aren’t any straightforward options.

We’re additionally studying . . . 

• US international coverage: America wants a brand new strategy that’s rooted within the breaking apart of concentrated international financial energy, writes Chris Murphy, the junior senator for Connecticut.

• US elections: With only one week left, Kamala Harris and Donald Trump seem deadlocked. Right here’s what to know in regards to the presidential race in its remaining stretch.

• Snap’s struggles: Founder Evan Spiegel is battling to revive the social media firm’s fortunes as ambitions are hit by the rising energy of arch-rival Meta.

Chart of the day

The writer of works by JK Rowling and Sarah J Maas, Bloomsbury has remained steadfastly unbiased by way of the years. Its client division, pushed by gross sales of two of probably the most profitable authors of recent occasions, has risen, however the firm can be diversifying into reference titles, having just lately acquired the tutorial checklist of US writer Rowman & Littlefield for $83mn in a hunt for steady revenues.

Take a break from the information

Jean Tinguely is considered as a pioneer of kinetic artwork. With the centenary of the latter-day Dadaist’s delivery simply months away, the Pirelli HangarBicocca museum in Milan has kicked off celebrations early with a retrospective that highlights the novel nature of his work and his connections with the Italian metropolis.